For a €150,000 mortgage over 25 years, the annual review will add about €85 to a typical Canary Islands household's monthly payment. The euríbor closed September at 3.24%, up from 2.95% in August. That is its highest level since July 2024 and its third monthly rise in a row, information from figures reported by EFE and other Spanish media.
Over a year, the increase amounts to €1,020. Borrowers with loans reviewed every six months will pay about €58 more each month. Larger mortgages, including those common in the Canary capitals, will take a bigger hit.
Information from LD/Agencias, the increase comes as housing already takes a large share of many salaries across the archipelago. The added interest cost leaves households with less to spend as everyday prices continue to rise.
The forces driving that pressure lie beyond the islands. The conflict in Iran, which began in February, and the subsequent closure of the Strait of Hormuz pushed oil prices higher. That matters directly in the Canary Islands, where supplies depend on transport from outside the region. Higher energy costs then feed into inflation.
Prices in Spain are approaching a 5% increase, and families are losing purchasing power. On 10 September 2026, the European Central Bank raised all three basic interest rates by 25 basis points. The deposit rate rose to 2.50%. The refinancing rate reached 2.65%, while the marginal lending rate rose to 2.90%. Families now face two pressures at once: borrowing costs are higher, and the shopping basket costs more. The ECB's September decision set the deposit rate at 2.50%, the basic refinancing rate at 2.65% and the marginal lending facility at 2.90%.
The Bank of Spain publishes the September euríbor as an official mortgage-market reference, but it becomes the effective official reference only after publication in the Official State Gazette. That timetable matters to borrowers and lenders calculating mortgage reviews.
More borrowers are choosing fixed-rate products for greater certainty. Fixed-rate loans made up 62.3% of new mortgages and are now the preferred protection against further changes in the indicator. July 2026 data from Spain's National Statistics Institute show that variable-rate loans accounted for the remaining 37.7% of new housing mortgages.
Housfy expects the euríbor to stay near current levels and return to between 2.5% and 2.7% by the end of 2027 if inflation eases. Kelisto offers a less favourable outlook, warning that further ECB adjustments could keep the indicator above its current level at the end of 2026.
The impact reaches beyond the monthly payment. Higher credit costs can restrict investment and make it harder for families to build financial security through home ownership.
In the Canary Islands, variable-rate borrowers face the immediate risk. Inflation and energy costs are also shrinking the money left in household budgets. Financing is becoming more expensive, strengthening the case for a more flexible productive economy and fewer barriers to saving. Easier access to property ownership is also needed.
